13th Sep 2013 14:45
LONDON (Alliance News) - Lenders to the Co-Operative Group are demanding capital expenditure cuts and and greater protection for loans in return for support on financial restructuring, Sky News Business Editor Mark Kleinman reported Friday.
The lenders, led by Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland, have apparently made significant progress on helping the Co-Op mutual fill a GBP1.5 billion capital gap in its banking arm, Kleinman says.
The Co-Op Group would contribute GBP1 billion to the bank by selling off its insurance assets and bondholders would suffer a further hit of about GBP500 million on their investments, according to Sky News.
The Co-Op Group's overall debt will increase to over GBP1.5 billion compared to the GBP1.2 billion reported in its half-yearly results, Kleinman said.
http://news.sky.com/story/1141242/co-op-group-lenders-close-to-new-deal
By Samuel Agini; [email protected]; @samuelagini
Copyright 2013 Alliance News Limited. All Rights Reserved.
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